ITP guide · Madrid

ITP in Madrid 2026: rates, reductions and rebates

Updated: July 8, 2026 · Legislation verified against official sources

General rate 2026 6%

Reductions and reliefs: 4% for large families; 10% rebate on homes ≤€250,000; 100% rebate for under-35s in municipalities with fewer than 2,500 inhabitants.

Calculate your ITP and mortgage in Madrid ↓

If you are going to buy a second-hand (resale) home in the Community of Madrid, the tax you will pay as the buyer is the ITP (Impuesto de Transmisiones Patrimoniales y Actos Jurídicos Documentados, the property transfer tax), in its Transmisiones Patrimoniales Onerosas form (ITP-TPO). Since 2014 Madrid has applied a general rate of 6%, one of the lowest among the “common regime” regions, and complements it with a reduced rate for large families and with rebates on the tax due for main residences.

The regional rules are set out in the Texto Refundido de las disposiciones legales de la Comunidad de Madrid en materia de tributos cedidos por el Estado (the consolidated text of Madrid’s rules on devolved taxes), approved by Decreto Legislativo 1/2010, de 21 de octubre. The most recent changes relevant to buyers come from Ley 5/2024, de 20 de noviembre (which raised the rebate for under-35s in small municipalities to 100%) and from Ley 6/2025, de 23 de diciembre, the 2026 Budget Act (which added a 95% rebate for long-established shops and hospitality businesses, with no effect on private home buyers).

In this article we review, with the exact legal citation for each point, everything that is in force today.

The essentials at a glance

Item 2026 figure Rule
General rate (resale housing) 6% Art. 28 TR (D.Leg. 1/2010, redacción Ley 6/2013)
Large family (main residence) 4% Art. 29 TR
Main-residence rebate (value ≤ €250,000) 10% of the tax due Art. 30 bis TR (redacción Ley 5/2024)
Rebate for under-35s in municipalities with fewer than 2,500 inhabitants 100% of the tax due (value ≤ €250,000) Art. 30 bis TR (redacción Ley 5/2024)
Real estate companies (buying to resell within 3 years) 2% Art. 30 TR
Taxable base The higher of the price and the Cadastre reference value Art. 10 TRLITPAJD (RDLeg 1/1993, redacción Ley 11/2021)
Form and deadline Modelo 600, 30 working days from the deed Official website of the Community of Madrid

When ITP is due (and when it is not)

ITP-TPO is charged on the purchase of a resale home (second and subsequent transfers), and it is always paid by the buyer. If you buy a new-build home directly from the developer, you do not pay ITP: you pay IVA (Spanish VAT) at 10% plus the AJD (Actos Jurídicos Documentados, stamp duty) charge on the deed. The two routes are mutually exclusive: a given sale is taxed under IVA or under TPO, never both.

The tax also covers ancillary elements transferred with the home (garage, storage room), and it accrues on the day the act or contract is executed, normally the date of the public deed.

The taxable base: the Cadastre reference value

Since 2022, the taxable base for real estate is no longer simply the agreed price. Under art. 10 del Texto Refundido de la Ley del ITPAJD (Real Decreto Legislativo 1/1993, as worded by Ley 11/2021), the taxable base is the reference value published by the Dirección General del Catastro (the Cadastre) as at the accrual date; however, if the agreed price or the declared value is higher, the highest of those figures is used. If the property has no certifiable reference value, the base is the highest of the declared value, the price and the market value.

You can check the home’s reference value at the Cadastre’s electronic office (Sede Electrónica del Catastro) before signing. It is a key figure: paying a price below the reference value does not reduce the tax.

The general rate: 6%

As a general rule, transfers of real estate located in the Community of Madrid, as well as the creation and assignment of rights in rem over such property (except security rights), are taxed at 6% (art. 28 TR approved by D.Leg. 1/2010, as worded by art. 1.Dos of Ley 6/2013, in force since 2014). Example: for a resale home with a taxable base of €200,000, the tax due is €12,000.

Reduced rates in force in 2026

Large families: 4%

This applies to the transfer of a property that is going to be the main residence of a large family (familia numerosa) (art. 29 TR, as amended by Ley 6/2018). Full requirements:

  • The taxpayer must hold large-family status (as defined in Ley 40/2003; evidenced by the large-family certificate, family record book or another document as at the accrual date).
  • The property must be going to serve as the family’s main residence (as defined in disposición adicional 23.ª of Ley 35/2006 on personal income tax (IRPF) and its implementing rules).
  • If the previous main residence was owned by any of the family-status holders, it must be sold within the 2 years before or after the purchase of the new one. This is not required where an adjoining property is acquired to be joined to the main residence.
  • The home must actually be occupied within 12 months and for a continuous minimum of 3 years (except in the circumstances allowed by the IRPF rules); if this is breached, a supplementary self-assessment at the general rate, with interest, must be filed within one month.

Real estate companies buying to resell: 2%

Of lesser interest to private buyers: companies in the sector (construction, development or dealing in real estate on their own account) that acquire homes to add to their current assets and resell them within a maximum of 3 years, in a sale itself subject to TPO, are taxed at 2% (art. 30 TR). Awards in judicial auctions are excluded.

Rebates and deductions from the tax due

Madrid is, along with very few other regions, a territory with general rebates on the tax due for private buyers:

10% rebate for the purchase of a main residence (art. 30 bis TR, introduced by Ley 6/2018 and worded by Ley 5/2024). Requirements:

  • The buyer must be an individual acquiring a property that is going to be their main residence (as defined for IRPF purposes).
  • The property’s value must be €250,000 or less. In calculating that limit, ancillary elements and garage spaces transferred together with the home are included, even if they are separate registered properties.
  • The home must be occupied within 12 months and for at least 3 continuous years; otherwise, a supplementary self-assessment must be filed within one month, with interest.
  • It is incompatible with the 4% large-family rate (you must choose one benefit or the other).

Example: a €250,000 home → tax at 6% of €15,000; with the 10% rebate you pay €13,500.

100% rebate for under-35s in small municipalities (same art. 30 bis, as worded by Ley 5/2024, in force since 29 November 2024). The above rebate rises to 100% (zero tax due) when the buyer is under 35 and the main residence is in a Madrid municipality with fewer than 2,500 inhabitants as at 1 January of the year before the accrual date, according to INE data. The same limits (value ≤ €250,000) and occupancy obligations apply.

Other rebates in force, of narrower scope: the 100% rebate for those who acquire a property to replace another damaged by the works on the Metro Line 7B tunnel (DT octava del TR, added by Ley 9/2024; incompatible with the art. 30 bis rebate), and the 95% rebate for owners of long-established (“con solera”) shops or hospitality businesses (at least 50 years of activity in the Community of Madrid) that buy a property to use in their business (art. 30 quinquies TR, added by Ley 6/2025, in force in 2026; it does not apply to home purchases).

How to pay: form and deadline

A self-assessment is filed using modelo 600 (tax form 600) and the deadline is 30 working days from the execution of the act or contract (the date of the deed), not counting Saturdays, Sundays or public holidays, according to the official website of the Community of Madrid. It can be filed online (Oficina Virtual Tributaria) or in person by appointment, attaching a copy of the notarial document.

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Frequently asked questions about the ITP in Madrid

How much ITP is paid in Madrid in 2026? ▼

The current general rate is 6%. There are also reduced rates and reliefs: 4% for large families; 10% rebate on homes ≤€250,000; 100% rebate for under-35s in municipalities with fewer than 2,500 inhabitants. Every relief has detailed requirements, explained in this guide with its legal citation.

Who pays the ITP and what is the deadline in Madrid? ▼

The buyer of the resale home always pays the ITP, through a self-assessment filed with the corresponding tax administration. The usual deadline is 30 working days or one month from signing the deed; the exact form and deadline are covered in this guide.

What value is the ITP calculated on in Madrid? ▼

On the cadastral reference value or the purchase price if higher (art. 10 TRLITPAJD, since 2022). Paying a price below the reference value does not reduce the tax.

Do new-build homes pay ITP in Madrid? ▼

No. A new home bought from the developer is subject to 10% VAT (4% for special-regime subsidised housing) plus stamp duty (AJD). The ITP only applies to resale homes in Madrid.

Comparing with another region?

The same home can pay a very different tax a few kilometres away: check the current ITP in every other region.

Andalusia 7% Aragon 8–10% scale Asturias 8/9/10% by value Balearic Islands 8–13% scale Canary Islands 6.5% Cantabria 9% Castilla y León 8% (+10% above €250,000) Castilla-La Mancha 9 % Catalonia 10–13% scale Ceuta and Melilla 6% with a 50% rebate → 3% effective Valencian Community 9% (11% above €1M) Extremadura 8/10/11% scale Galicia 8 % La Rioja 7% Murcia 7.75% Navarre 6% Basque Country 4% housing (7% general)